FACULTY OF COMPUTER AND MATHEMATICAL SCIENCES

CS240
BACHELOR OF INFORMATION TECHNOLOGY (HONS.)

ISP640 – COMPUTER PROJECT MANAGEMENT

TUTORIAL - CHAPTER 8
SHIPPLIER TEAM

STUDENT NAME STUDENT ID GROUP

NUR SYIFA BINTI RAMZI 2020784099

NUR BALQIS BINTI MOHD AZUDDIN 2020325285

RCS2404A
NOOR SYARAFANA BINTI NORDIN 2020928723

MAS NUR ALYA BINTI MOHD YUSOF 2020987555

LECTURER NAME DR TAJUL ROSLI RAZAK

QUESTION 1 (20 MARKS)

Assume you have to complete project ABC within 6 months. Given the following information as
part of the payment received for one particular phase of a project ABC.

Planned Actual Earned

Value (RM) Cost (RM) Value (RM)
Phase 3 : Integration Testing

Test Integration of all modules 600.00 600.00 600.00

Identify components that do not meet specifications 300.00 500.00 225.00
Modify code 1,400.00 1,400.00 700.00
Retest integration of modules 400.00 400.00 300.00
Verify components meet standards 200.00 200.00 160.00

Payment 3 : 2,900.00 3,100.00 1,985.00

a) Perform the following and explain your results.

i. Cost Variance (CV),

CV = EV - AC
RM1985 - RM3100
= RM1115
ii. Schedule Variance (SV),
SV = EV - PV
RM1885 - RM2900
= RM1015
iii. Cost Performance Index (CPI),
CPI = EV / AC
RM1885 / RM3100
= 0.61
iv. Schedule Performance Index (SPI)
SPI = EV / PV
RM1885 / RM2900
= 0.65
 v. Use the schedule performance index (SPI) to estimate the completion time and how
much longer it will take to finish this project.

SPI = EV / PV = 1885 / 2900 = 0.65 x 100 = 65%

(15 marks)

b) Based on the report above, do you need a project review and what purpose does it serve?

Yes, I need a project review. This is because to not only show evidence that the project
work has been completed, but also that the work has been completed according to
certain standards or agreed-upon requirements.

(5 marks)
QUESTION 2 (10 MARKS)

Your project has a budget of RM320,000.00 and is 25 percent complete. You have spent
RM75,000.00 on your project. However, due to some rework and additional time from a
vendor, your project is supposed to be 30 percent complete by this time.
Therefore, for this project calculate the following and explain your results.

i. Earned Value.

𝟐𝟓
Earned Value (EV) = × 𝟑𝟐𝟎, 𝟎𝟎𝟎
𝟏𝟎𝟎

= RM 80,000

ii. Cost Variance.

Cost Variance = Earned Value – Actual Cost

CV = EV - AC

Actual Cost (AC) = RM 75,000

Earned Value (EV) = RM 80,000

Cost Variance (CV) = 80,000 – 75,000

= RM 5,000
Hence, the project’s Cost Variance is RM 5,000 and you are under budget
since it is positive.
iii. Cost Performance Index.

Cost Performance Index = (Earned Value) / (Actual

Cost)
CPI = EV / AC

Earned Value (EV) = RM 80,000

Actual Cost (AC) = RM 75,000

𝟖𝟎,𝟎𝟎𝟎
Cost Performance Index = = 1.07
𝟕𝟓,𝟎𝟎𝟎

Hence, the Cost Performance Index is 1.07

This means you are earning 1.07 for every 1 spent since the Cost Performance
Index is greater than one. This means you are under budget.

iv. Schedule Performance Index.

Schedule Performance Index = (Earned Value) / (Planned

Value)
SPI= EV / PV
Earned Value (EV) = RM 80,000

𝟑𝟎
Planned Value (PV) = × 𝟑𝟐𝟎, 𝟎𝟎𝟎
𝟏𝟎𝟎

= RM 96,000

𝟖𝟎,𝟎𝟎𝟎
Schedule Performance Index = = 0.83
𝟗𝟔,𝟎𝟎𝟎

Hence, the Schedule Performance Index is 0.83

The project is behind schedule since the Schedule Performance Index is less
than one.
(10 marks)
QUESTION 3 (20 MARKS)

a) Given the following information for the one-year project, answer the following
questions.

Planned value (PV) = RM 50,000.00

Earned value (EV) = RM 45,000.00
Actual cost (AC) = RM 55,000.00
Budget at completion (BAC) = RM 160,000.00

i. What is the cost variance, schedule variance, cost performance index (CPI),
and schedule performance index (SPI) for the project?

Cost Variance (CV) = EV – AC

= RM 45,000.00 – RM 55,000.00
= - RM 10,000.00
# Negative value = over budget

Schedule Variance (SV) = EV – AC

= RM 45,000.00 – RM 50,000.00
= - RM 5,000
# Negative value = behind schedule

Cost Performance Index (CPI) = EV / AC

= RM 45,000.00 / RM 55,000.00
= RM 0.82
# Ratio < 1 = behind budget (cost overrun)

Schedule Performance Index = EV / PV

= RM 45,000.00 / RM 50,000.00
= RM 0.9
# Ratio < 1 = behind schedule

(8 marks)
ii. Based on the answer above, how is the project doing? Is it ahead of schedule
or behind schedule? Is it under budget or over budget?

Based on the answer above the project is behind schedule and it is also over
budget for the project.

(2 marks)

iii. Use the CPI to calculate the estimate at completion (EAC) for this project.
Explain whether the project performing better or worse than planned?

EAC (typical variances) = Cumulative AC + ((BAC – Cumulative EV) /

Cumulative CPI)
= RM 55,000 + ((RM 160,000 – RM 45,000) / 0.82)
= RM 55,000 + (RM 115,000 / 0.82)
= RM 195,243.90

As a result of the formula to estimate at completion (EAC), the project is

performing worse than planned because the EAC is more than planned which
is RM 160,000.

(3 marks)

iv. Use the schedule performance index (SPI) to estimate how long it will take to
finish this project.

Project = 1 year / 12 months

SPI = 0.9
= 12 months / 0.9
=13.3 months
As a result of SPI, it will take 13.3 months to finish the project.

(1 mark)
 v. Explain how earned value management (EVM) can be used to control costs
and measure project performance.

EVM control costs and measure project performance by the technique that
integrates the cost, scope, and schedule of the project into a single parameter
as it provides the status of the performance of the project. Also, based on
planned and actual values, EVM predicts the future and enables project
managers to adjust accordingly.

(2 marks)

b) Identify and explain TWO(2) qualities of good project metric.

 Understandable – A project metric should be intuitive and easy to

understand.
 Proven – A project metric should be meaningful, accurate and have a high
degree of validity in to be useful.

(4 marks)
QUESTION 4 (20 marks)
Given the information for eight-months project, answer the following questions. The total
planned cost of the project is RM200,000. The table below shows the data collected to date.
The plan is for the project to be completed after eight months. The earned value report in
the table below shows the data that been collected for the first four months of the project.

The figures shown in the table are cumulative.

Month Planned Value (PV) Actual Cost (AC) Earned Value (EV)
1 10,000 10,000 10,000
2 30,000 20,000 25,000
3 50,000 50,000 60,000
4 70,000 90,000 70,000
5 130,000
6 170,000
7 190,000
8 200,000

a) What is the schedule performance index (SPI) and cost performance index (CPI) for month
3? In month 3 is the project ahead or behind schedule? Is it under or over budget?

SPI = 60,000 / 50,000

= 1.2

CPI = 60,000 / 50,000

= 1.2

= In month 3 the project is ahead of the schedule and the project is under budget.

(4 marks)

b) What is the cost variance (CV) and schedule variance (SV) for month 4? In month 4 is the
project ahead or behind schedule? Is it under or over budget?

CV = 70,000 – 90,000
= -20,000

SV = 70,000 – 70,000
=0

= In month 4 the project is right on schedule but it is over budget.

(3 marks)
c) What is the estimate at completion (EAC) at month 4 if the cost performance index will
remain the same for the remaining part of the project?

EAC = 90,000 + (160,000 – 70,000) / 1.2

= 165,000

= The total budget for this project in month 4 is estimated to be RM 165000.

(5 marks)

d) During month 5, it is found that some of the work that was reported complete in month 2
was considered unacceptable. It will require RM5,000 to fix the problem and make this work
acceptable. The work is scheduled to be done in month 6. No other work is reported to be
completed during month 5. What is the EV for month 5?

= Earned Values (EV) for month 5 is 65,000.

(2 marks)

e) What factors need to be known in order to be able to calculate the Estimate to Complete
(ETC)?

The factors that need to be known is budget at completion, earned value, and
the actual cost

(3 marks)
f) Explain what happens during the process to determine the project budget.

The project budgeting is a process during which the charge of the individual work is
probable throughout the project. This is mainly performed based on the WBS.
Through the process of project budgeting, a cost baseline is formed so as to
calculate the performance and the support requirements.

(3 marks)